Section 402:29-a Lawful Distributions.
I. Nothing in this subdivision shall prohibit the acquisition by a domestic company of other or additional securities or property if received as a dividend or as a lawful distribution of assets, or upon a debt or judgment, or under a lawful and bona fide agreement of bulk reinsurance, merger, or consolidation, or if acquired by it through the exercise of warrants, options, or similar rights to acquire securities received by it in accordance with this subdivision.
II. Nothing in this subdivision shall prevent any company from entering into an agreement for the purpose of protecting the interests of the company in securities lawfully held by it, or for the purpose of reorganization of a corporation which issued securities so held, and from depositing such securities with a committee or depositaries appointed under such agreement, nor from accepting stock, bonds, or other securities or other property which may be distributed pursuant to any such agreement, or to any plan of reorganization or arrangement.
III. No provision of this subdivision shall prevent any company from acquiring or holding any property acquired in satisfaction of any debt previously contracted, or that shall be obtained by sale or foreclosure of any security held by it. Any security or property so acquired which is not otherwise an eligible investment under this subdivision shall be disposed of within 5 years from date of acquisition, unless within such period the security or property has attained to the standard of eligibility, except that any security or personal property acquired under any agreement of bulk reinsurance, merger, or consolidation may be retained for a longer period if so provided in the plan for such reinsurance, merger, or consolidation. The commissioner may grant from time to time reasonable extensions of the period within which an insurer shall dispose of any such property or security.
Source. 1991, 372:4, eff. Jan. 1, 1992.